Regulatory Changes, Financial Markets – Week 7

Global Regulatory Updates

The complex and fast-evolving regulatory landscape creates formidable compliance challenges for financial institutions. Expanding rules, fragmented policymaker perspectives, jurisdictional variances and increasing penalties for non-compliance mean firms must work harder than ever simply to stand still.

Navigate the ever-shifting tides of global financial regulations with our expertly curated digest of key updates. Stay informed, stay compliant.

Number of Regulatory Updates (Week 7) by Region


APRA (Australian Prudential Regulation Authority), Australia

APRA releases letter updating reporting guidance on large exposures on GRF 117.0 / GRF 117.0(G) πŸ”—

The Australian Prudential Regulation Authority (APRA) issued an update regarding the reporting of large exposures for general insurers and level 2 insurance groups. APRA emphasizes the importance of accurate data submission to meet supervisory needs, particularly concerning concentration risk and exposures to various counterparties. Due to variations in wording used by insurers in free text fields, APRA has developed standard wordings for ‘counterparty group name’ and ‘exposure description’ to enhance data comparability and usefulness for supervision. Insurers are instructed to adhere to these standard wordings where applicable, while still reporting unchanged items not listed. APRA will periodically review and update these lists. Additionally, insurers are reminded to report the counterparty ACN or ABN to properly identify large exposure counterparties. πŸ”—

APRA consults on proposed amendments to the operational risk financial requirement for superannuation πŸ”—

The Australian Prudential Regulation Authority (APRA) has launched a consultation on proposed changes to the operational risk financial requirement (ORFR) for registrable superannuation entities (RSE) licensees. Following industry feedback on a discussion paper released in November 2022, APRA has developed a simpler approach aimed at better integrating the ORFR with Prudential Standard CPS 230 Operational Risk Management. The proposed amendments to Prudential Standard SPS 114 and its supporting guidance focus on clarifying the purpose of the ORFR, establishing a clear relationship with CPS 230, expanding the permissible uses of the ORFR, and adjusting notification requirements to facilitate its utilization. APRA intends to maintain the existing guideline target amount for the ORFR at 25 basis points of Funds Under Management (FUM), while acknowledging that exceptional cases may warrant lower target amounts with compelling justifications from significant financial institutions. Stakeholders are invited to provide feedback on the draft amendments until May 13, 2024, with APRA planning to finalize the updates later in the year for implementation in 2025, aligning with CPS 230. πŸ”—

ASIC (Australian Securities & Investments Commission), Australia

ASIC has initiated a consultation regarding proposed changes to the ASIC Derivative Transaction Rules (Reporting) 2024 and ASIC Derivative Transaction Rules (Clearing) 2015. Feedback on the proposed alterations is encouraged, with submissions accepted via email until March 28, 2024. The proposed changes, outlined in Consultation Paper 375, aim to simplify reporting for exchange-traded derivatives, streamline the scope of foreign entity reporting, eliminate alternative reporting provisions, clarify the exclusion of FX securities conversion transactions, and introduce additional allowable values for certain data elements. Additionally, minor adjustments to the Clearing Rules are proposed to align with the Reporting Rules and update references in line with legislative amendments. These changes, slated to take effect on October 21, 2024, with some exceptions, have been developed based on stakeholder feedback and a review of outstanding policy matters. While ASIC anticipates minimal additional compliance burden for most reporting entities, some international and small-scale exempt entities may be affected. The 2024 Reporting Rules, replacing the current regulations, aim to align with international standards, consolidate provisions, and ensure reporting requirements remain effective. πŸ”—

IRDAI (Insurance Regulatory and Development Authority of India), India

Exposure Draft of IRDAI (Protection of Policyholders’ Interests and Allied Matters of Insurers) regulations 2024 πŸ”—

The Insurance Regulatory and Development Authority of India (IRDAI) has released an Exposure Draft of the Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests and Allied Matters of Insurers) Regulations, 2024, as part of its efforts to streamline regulations and protect policyholders’ interests. The draft consolidates several existing regulations and proposes significant changes, including extending the free look period for policies to 30 days, introducing electronic issuance of insurance policies, and easing requirements for insurers to open foreign branch offices. Stakeholders are invited to provide comments and suggestions on the proposed regulations by March 4, 2024. πŸ”—

Exposure Draft IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024 πŸ”—

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced an Exposure Draft for the IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024, aiming to establish a digital public infrastructure called “Bima Sugam” to enhance accessibility, affordability, and transparency in the insurance sector. The proposed regulations outline the formation of a not-for-profit company under the Companies Act, 2013, to operate and maintain the marketplace, with governance mechanisms including widely held shareholding among insurers and the nomination of IRDAI members on the company’s board. The draft emphasizes a consent-based architecture for services and prohibits charging consumers for availing Bima Sugam’s services. Stakeholders are invited to provide feedback on the regulations by March 4, 2024. πŸ”—

JFSA (Japan Financial Services Agency), Japan

The Financial Services Agency has announced the results of public comments on the “Cabinet Office Ordinance (draft) to partially revise the rules regarding terms, formats, and preparation methods of financial statements, etc.” Following the solicitation of opinions, one comment was received. The amendment pertains to revisions in response to Practical Report No. 45 and Corporate Accounting Standards No. 32, aiming to adjust regulations concerning terminology, formats, and preparation methods for financial statements. The Cabinet Office Ordinance, partially amending these regulations, will be promulgated, and enforced as of the announcement date. Detailed summaries of the comments and the agency’s stance, as well as comparisons between old and new regulations, are provided in the attachments for reference.


BaFin (Federal Financial Supervisory Authority), Germany

The German Act on the Recovery and Resolution of Credit Institutions (SAG), effective since January 1, 2015, aligns with the European Recovery and Resolution Directive and aims to manage crises within financial institutions without resorting to taxpayer funds. Key changes under SAG involve shareholder and creditor participation in losses and resolution costs, expanded recovery plan obligations, early intervention by supervisory authorities, intragroup financial support, and cross-border cooperation among national authorities. Germany, a frontrunner in implementing recovery and resolution regulations, has been pivotal in defining European standards and transposing directives into domestic law. The SAG emphasizes proactive recovery planning to avert institutional failure, with BaFin overseeing plan assessments and facilitating qualitative enhancements. Early intervention measures empower BaFin to prompt corrective actions, while group financial support agreements bolster crisis management capabilities. Regarding resolution, the SAG stipulates conditions such as failing or likely-to-fail status and public interest necessity. Resolution tools include sale of business, bridge institution transfers, asset separation, and bail-in, with shareholders and creditors potentially absorbing losses. Bail-in provisions aim to mitigate taxpayer burden during banking crises, emphasizing the importance of maintaining eligible liabilities. For international financial groups, the SAG mandates close cooperation among supervisory and resolution authorities, facilitating cross-border resolution efforts. πŸ”—

Banca d'Italia (Bank of Italy), Italy

The European Central Bank (ECB) has released the final revised Guide to internal models, encompassing general topics, credit risk, market risk, and counterparty credit risk. This updated Guide clarifies the ECB’s interpretation of rules governing banks’ internal models and integrates feedback from a public consultation held until September 2023. The revisions address the inclusion of climate-related risks, offer guidance on returning to the standardized approach for risk-weighted assets calculation, and promote common definitions of default and treatment of non-performing loan disposals. Specific chapters detail measurement of default risk in trading book positions and clarify counterparty credit risk considerations. The ECB’s banking supervision website provides access to the revised Guide, a feedback statement, and industry comments. Internal model usage by banks is subject to ECB approval and ongoing monitoring to ensure compliance with regulatory requirements, part of the targeted review of internal models (TRIM) initiative aimed at reducing variability in model outputs. πŸ”—

EU (European Union)

The General Secretariat of the Council has forwarded a draft Directive of the European Parliament and the Council amending Directives 2011/61/EU and 2009/65/EC concerning delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services, and loan origination by alternative investment funds. The proposal, based on Article 53(1) TFEU, was submitted by the Commission on November 25, 2021. The European Central Bank provided its opinion on August 9, 2022. On February 7, 2024, the European Parliament adopted its first-reading position, reflecting a compromise agreement acceptable to the Council. The Permanent Representatives Committee is now requested to confirm agreement and recommend Council approval of the Parliament’s position, facilitating the legislative act’s adoption pending signing by the Presidents of the European Parliament and the Council for publication in the Official Journal of the European Union. πŸ”—

FRC (Financial Reporting Council), UK

The Financial Reporting Council (FRC) has announced a consultation on proposed revisions to Technical Actuarial Standard 200 (TAS 200) to streamline the standard and align it with recent regulatory changes in the insurance industry. The proposed changes aim to assist practitioners in considering the implications of the FCA’s Consumer Duty principle on actuarial work and eliminate provisions already adequately covered in the FRC’s General Actuarial Standards (TAS 100). Mark Babington, the FRC’s Executive Director of Regulatory Standards, emphasized that the revisions are intended to ensure high-quality actuarial work that supports a robust insurance market in the UK. The consultation period is open until May 10. πŸ”—

FSC (Financial Services Commission), Mauritius

The Financial Services Commission (FSC) of Mauritius has released a Consultation Paper titled “Decentralised Finance (DeFI): Regulatory Considerations on Financial Collaterals” for public feedback. This paper aims to discuss the nature, benefits, and challenges of financial collaterals within the context of DeFI, as well as to evaluate how various forms of financial collaterals can be integrated into the Mauritian regulatory framework. Stakeholders and the public are encouraged to provide their comments and feedback by email before March 15, 2024. The input received will help inform the FSC’s development of new policies or frameworks to address the use of financial collaterals by DeFI stakeholders in the Mauritius International Financial Centre. πŸ”—

GFSC (Guernsey Financial Services Commission), Guernsey

Updates to the AML/CFT/CPF Handbook πŸ”—

The Guernsey Financial Services Commission has released an updated Handbook on Countering Financial Crime (AML/CFT/CPF) following a consultation on rules and guidance to extend obligations on specified businesses to counter proliferation financing. The update aligns with regulatory changes made by the States of Guernsey Policy and Resources Committee to Schedule 3 of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999. Additionally, amendments based on the second national risk assessment on money laundering, terrorist financing, and proliferation financing risks to the Bailiwick have been incorporated, along with changes to rules on pooled bank accounts for local businesses and updates to Chapter 12 on UN, UK, and Bailiwick sanctions. πŸ”—

Feedback Paper following consultation on the Rules for Retail General Insurers πŸ”—

The Guernsey Financial Services Commission has released a feedback paper on the consultation regarding the Rules for Retail General Insurers, initiated in March 2023. With 19 responses received from industry stakeholders, the Commission carefully considered the feedback to refine its proposals. The consultation aimed to address various aspects such as scope, governance, audit, capital and solvency, annual fees, systems and controls, disclosure of information, insurance managers, and policyholder protection schemes. While most feedback was positive and constructive, leading to updates reflecting existing good practice and necessary safeguards for retail customers, some proposed changes were revised based on industry input. However, in certain cases, where the Commission deemed it necessary to enhance protection for retail customers and uphold international standards, proposals were retained despite opposing feedback, with efforts made to balance concerns while justifying the chosen approach. πŸ”—


AI Opportunity Forum holds first meeting πŸ”—

The inaugural meeting of the AI Opportunity Forum, co-chaired by Technology Secretary Michelle Donelan and the Prime Minister’s Special Adviser on Business and Investment, Franck Petitgas, convened on February 12th to explore the widespread implementation of AI technology across organizations of all scales. Held at Downing Street and attended by business and tech leaders, discussions focused on overcoming barriers to AI adoption, emphasizing safety, public trust, workforce upskilling, and collaboration with academia. Members highlighted existing progress in various sectors and the potential for significant productivity gains. The forum pledged to drive practical solutions to support businesses in maximizing AI benefits, with subsequent meetings scheduled for April and June, alongside interim discussions. πŸ”—

Cyber Resilience πŸ”—

The UK government’s cyber resilience policy aims to safeguard businesses and organizations against cyber threats by promoting preparedness, response, and recovery from cyber-attacks and security breaches. With an investment of Β£2.6 billion in the National Cyber Strategy, the government emphasizes the importance of cyber resilience in ensuring operational continuity, business growth, and economic prosperity. Led by the Department for Science, Innovation and Technology (DSIT), in collaboration with other government departments and agencies, the policy focuses on developing regulations, incentives, and guidance to enhance cyber security practices across various sectors. Initiatives include the Cyber Governance Code of Practice, enhancing software resilience and security, and promoting secure connected places. Through research reports, statistics, and engagement with stakeholders, the government seeks to continually evolve its cyber resilience efforts to adapt to emerging threats and technological advancements. πŸ”—

Introduction to AI assurance πŸ”—

The “Introduction to AI Assurance” guide, published by the Department for Science, Innovation and Technology, serves as a comprehensive resource for practitioners seeking to understand how assurance techniques can contribute to the development of responsible AI. This guide introduces key concepts and terms related to AI assurance and situates them within the broader AI governance landscape. It aligns with the UK’s pro-innovation approach to AI regulation outlined in the March 2023 white paper and subsequent consultation response, which emphasized the importance of regulatory principles in governing AI. The guide aims to offer an accessible introduction to assurance mechanisms and global technical standards, supporting both industry and regulators in building and deploying responsible AI systems. It also highlights the intention to update the guidance regularly based on stakeholder feedback, evolving regulatory environments, and emerging best practices. πŸ”—

Isle of Man Government

The Isle of Man Financial Services Authority (FSA) has released a Discussion Paper seeking views on the regulation of certain crypto-asset activities for anti-money laundering and countering the financing of terrorism (AML/CFT) purposes. The paper outlines options for expanding the regulatory perimeter under the FSA08 to cover crypto-asset activities, including maintaining the current approach, extending existing definitions, or introducing new regulated activities. Interested stakeholders are encouraged to provide feedback on these options and related questions outlined in the paper. The FSA emphasizes the importance of confidentiality and data protection, stating that responses may be published or disclosed in accordance with relevant legislation. Responses to the Discussion Paper can be submitted online or via email/post to the FSA’s Legal & Policy Division by April 9, 2024. πŸ”—

ICO (Information Commissioner’s Office), UK

On February 13, 2024, the Information Commissioner’s Office (ICO) announced the approval of a certification scheme designed for legal service providers handling personal data. This certification scheme, known as the Legal Services Operational Privacy Certification Scheme, aims to help organizations demonstrate compliance with data protection requirements under the UK GDPR. Emily Keaney, ICO Deputy Commissioner, highlighted that legal service providers deal with significant amounts of sensitive personal data, and this certification will provide them with assurance regarding their adherence to data protection standards. By participating in the scheme, legal service providers can streamline their assessment of third-party data processors and reassure clients about their commitment to safeguarding personal information. This certification scheme marks the fifth set of UK GDPR certification criteria approved by the ICO, reflecting the ongoing efforts to ensure data protection compliance across various sectors. πŸ”—

IOMFSA (Isle of Man Financial Services Authority)

The Isle of Man Financial Services Authority (IOMFSA) is seeking feedback on the oversight of crypto-asset activities for AML/CFT purposes and potential regulatory approaches. Acknowledging both the economic potential and inherent risks associated with crypto assets, the Authority aims to assess the current regulatory framework in light of recent international developments, such as the adoption of the MiCA Regulation in the EU. The Discussion Paper outlines various options for regulation, including maintaining the status quo and introducing new regulated activities for crypto-asset service providers and stablecoin management. Interested parties are encouraged to provide input through an online survey or by email/post, with submissions due by April 9, 2024. Any proposed changes to the regulatory perimeter will undergo separate consultation processes. πŸ”—

LSB (Lending Standards Board), UK

The LSB has released the findings of its review on the Standards of Lending Practice for business customers, aiming to strengthen customer protections and enhance guidance for banks and lenders. The review, informed by industry-wide consultation and the LSB’s own research, highlights opportunities to improve support for SMEs in accessing financial products online and to promote financial inclusion. Key areas for further work include providing guidance on digital channels, supporting sustainable finance, enhancing processes for personal guarantees, and expanding the scope of the Standards to cover a wider range of products and sectors. Laura Mahoney, Head of Policy and Legal at the LSB, emphasizes the importance of upholding fairness and excellence in customer outcomes for businesses, ensuring that SMEs receive necessary support regardless of their circumstances. The LSB plans to engage with stakeholders regularly to address emerging challenges and ensure the Standards remain effective in supporting SMEs and the economy. πŸ”—

MFSA (Malta Financial Services Authority)

The Malta Financial Services Authority (MFSA) has released a circular addressing Company Service Providers (CSPs) regarding the submission of the Annual Compliance Return (ACR). The circular informs CSPs of the availability of the revised ACR template on the MFSA website, reflecting recent changes to the CSP Rulebook. Additionally, the circular outlines modifications in the naming convention for submissions and emphasizes the importance of adhering to the new guidelines. CSPs are instructed to submit their ACRs through the MFSA’s LH Portal, following specific naming conventions, and are provided with guidance on potential errors during the submission process. Any queries or issues are to be directed to the Trustees and Company Service Providers Supervision Function. πŸ”—

NIST (National Institute of Standards and Technology), UK

On February 14, 2024, NIST released the final version of Special Publication (SP) 800-66r2 (Revision 2), titled “Implementing the Health Insurance Portability and Accountability Act (HIPAA) Security Rule: A Cybersecurity Resource Guide.” Developed in partnership with the U.S. Department of Health and Human Services (HHS) Office for Civil Rights, this publication offers guidance to HIPAA-covered entities and business associates on managing risks to electronic Protected Health Information (ePHI). It outlines activities for building an information security program, provides resources for assistance, and offers mappings to NIST Cybersecurity Framework Subcategories and SP 800-53r5 security controls. πŸ”—

RICS (Royal Institution of Chartered Surveyors), UK

The future of real estate valuations is increasingly influenced by Environmental, Social, and Governance (ESG) factors. Experts from the RICS Europe Leaders’ Forum have emphasized the need to integrate ESG requirements into real estate valuations to address global climate and social challenges effectively. Through initiatives like the Leaders’ Forum and the publication of thought leadership papers and data lists, RICS aims to facilitate discussions among valuers, financial clients, and regulatory bodies to enhance transparency, consistency, and public trust in valuations. The thought leadership paper, “The future of real estate valuations: The impact of ESG,” provides insights from expert groups and RICS valuers across Europe, serving as a starting point for further debate and action. Additionally, the ESG and valuation data list offers core indicators for valuers to discuss with clients, promoting awareness and consistency in ESG integration across Europe. πŸ”—

UK Finance

The response from UK Finance to the FCA’s consultation on the proposed Anti-Greenwashing Rule emphasizes their support for the initiative to combat exaggerated or misleading sustainability-related claims. They welcome the publication of the Guidance but recommend certain amendments and clarifications to ensure effectiveness and alignment with existing regulations. Suggestions include clarification on how the expectations relate to the Rule’s requirements, collaboration with overseas authorities for alignment, confirmation of applicability to existing rules on communications and promotions, clarity on the Rule’s scope, and further guidance on various aspects of its application. Additionally, UK Finance advocates for a proportionate approach in enforcement, considering the audience’s sophistication and not penalizing firms relying on third-party statements. They believe this approach would encourage firms to pursue ambitious sustainability goals while supporting the market for sustainable products and services. πŸ”—


IOSCO (International Organization of Securities Commissions)

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have released a discussion paper calling for feedback on streamlining variation margin (VM) processes in centrally cleared markets. The paper presents eight effective practices addressing intraday VM call scheduling, treatment of excess collateral, pass-through of VM by CCPs, and transparency between CCPs, clearing members, and clients. These practices supplement existing standards and aim to assist CCPs in designing their VM call and collection processes. Interested parties are invited to provide input by April 14, 2024, via email to the Secretariats of CPMI and IOSCO. πŸ”—


Board Of Governors of the Federal Reserve System, US

The Board of Governors of the Federal Reserve System issues an Order of Assessment of a Civil Money Penalty upon the consent of Select Bank, Forest, Virginia, a state member bank, for violations of Regulation H implementing the National Flood Insurance Act. The Bank consents to pay a civil money penalty of $9,600 and to comply with the provisions of the Order. The penalty is payable to the National Flood Insurance Program and forwarded to the Secretary of the Board of Governors. The Order does not prevent further action by regulatory authorities but resolves the matter without formal proceedings or litigation. πŸ”—

Federal Register, US

Anti-Money Laundering Regulations for Residential Real Estate Transfers πŸ”—

The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury has issued a proposed rule requiring certain individuals involved in real estate closings and settlements to submit reports and maintain records on non-financed transfers of residential real property to specified legal entities and trusts nationwide. Direct transfers to individuals are exempt from this rule. The proposed rule aims to assist law enforcement and national security agencies in addressing illicit finance vulnerabilities in the residential real estate sector, preventing illicit actors from anonymously laundering proceeds through property purchases, and safeguarding U.S. economic and national security. Comments on the proposed rule are invited and must be submitted by April 16, 2024, through the Federal E-Rulemaking Portal or by mail to the Financial Crimes Enforcement Network. Further information is available from the FinCEN Regulatory Support Section. πŸ”—

Submission for OMB Review; Comment Request; Extension: Rules 8b-1 to 8b-5; 8b-10 to 8b-22; and 8b-25 to 8b-31 πŸ”—

The Securities and Exchange Commission (SEC) has submitted a request for extension of a previously approved collection of information under the Paperwork Reduction Act of 1995 regarding rules under Section 8(b) of the Investment Company Act of 1940. These rules pertain to the procedures for preparing and filing registration statements under the Investment Company Act, aiming to facilitate the registration process. While the rules generally do not require reporting of information, they impose burdens in the context of preparing registration statement forms. The SEC is not providing a separate burden estimate for these rules but will include them in its estimates for each registration form. The public is invited to submit comments on this proposed information collection within 30 days of publication. πŸ”—

Proposed Collection; Comment Request; Extension: Rule 12d2-2 and Form 25 πŸ”—

The Securities and Exchange Commission (SEC) is seeking comments on the extension and approval of collections of information related to Rule 12d2–2 and Form 25 under the Securities Exchange Act of 1934. These rules establish procedures for delisting securities from exchanges and withdrawing them from registration under Section 12(b) of the Act. The purpose of Form 25 is to inform the Commission and the public about securities no longer traded on exchanges and to ensure compliance with delisting rules. The estimated annual reporting burden for all respondents, including national securities exchanges and issuers, is 1,102 hours. Comments are invited on the necessity, accuracy, and potential enhancements of the proposed collection of information, with consideration given to suggestions submitted by April 16, 2024. πŸ”—

FinCEN (Financial Crime Enforcement Network), US

The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury has issued a Notice of Proposed Rulemaking (NPRM) aimed at preventing criminals and foreign adversaries from exploiting the U.S. financial system through investment advisers. This proposed rule would require certain investment advisers to comply with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements under the Bank Secrecy Act (BSA), including implementing risk-based AML/CFT programs, reporting suspicious activity to FinCEN, and maintaining records. The rule seeks to address regulatory gaps, enhance transparency, and protect U.S. economic and national security by applying consistent AML/CFT requirements across the investment adviser sector. FinCEN invites public comments on the proposed rule until April 15, 2024. πŸ”—

FINRA (Financial Industry Regulatory Authority), US

FINRA has fined Morgan Stanley Smith Barney LLC $1.6 million for repeated failures related to municipal securities transactions and supervisory lapses. This marks the first disciplinary action by FINRA for violating the close-out requirements of Municipal Securities Rulemaking Board (MSRB) Rule G-12(h) and related supervisory failures. The violations include the firm’s failure to timely close out failed inter-dealer municipal securities transactions and to promptly obtain physical possession or control of municipal security positions that are short for more than 30 calendar days. Morgan Stanley failed to cancel or close out 239 transactions aged over 20 calendar days after settlement date, totalling approximately $9 million, and did not take prompt steps to obtain possession or control of 247 municipal securities valued at around $9.4 million that it had failed to receive for an average of approximately 177 days. The firm also lacked adequate supervisory systems and procedures to ensure compliance with regulatory requirements until June and September 2021. Morgan Stanley consented to FINRA’s findings without admitting or denying the charges and agreed to pay the fine, with a portion allocated to the MSRB. πŸ”—

Government of Canada

In a speech delivered at the Standing Committee on Finance, the Commissioner of the Financial Consumer Agency of Canada (FCAC) provided insights into the agency’s role in protecting consumers of financial products and services. Highlighting FCAC’s mandate to supervise compliance with consumer protection measures and to enhance financial literacy, the Commissioner emphasized the agency’s collaboration with federal partners to ensure financial stability and consumer rights. Specifically addressing housing financing, the Commissioner discussed the strengthened consumer protection measures implemented by FCAC, including the Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances issued in July. This guideline aims to ensure fair and consistent relief measures for consumers facing mortgage default due to economic challenges. The Commissioner also highlighted FCAC’s ongoing research on Canadians’ financial well-being and educational efforts to empower consumers in making informed decisions about mortgage financing. The speech underscored FCAC’s commitment to safeguarding consumers and promoting financial literacy in the housing finance sector. πŸ”—

NAIC (National Association of Insurance Commissioners), US

The National Association of Insurance Commissioners (NAIC) has unveiled its strategic priorities for 2024, emphasizing collaboration and innovation to address key challenges in the insurance sector. These priorities include tackling climate risks and enhancing resilience, improving insurer financial oversight and transparency, combating deceptive insurance marketing practices, addressing race and insurance issues, and managing the use of artificial intelligence and cyber risks. The NAIC aims to promote consumer protection, financial inclusion, and regulatory modernization while advancing its state-based regulatory system in the United States. Through coordinated efforts and engagement with stakeholders, the NAIC seeks to drive effective solutions to benefit consumers, the insurance industry, and markets alike. πŸ”—

NYSE (New York Stock Exchange), US πŸ”—

The proposed rule change by NYSE National, Inc. (NYSE National) seeks to amend Rule 7.19 to provide additional pre-trade risk controls for Entering Firms and Clearing Firms. Currently, Rule 7.19 offers optional pre-trade risk controls to help manage risk, including a Gross Credit Risk Limit covering both open and executed orders. In response to market demand, NYSE National proposes to add two new risk controls: Gross Credit Risk Limit – Open Only and Gross Credit Risk Limit – Executed Only. These controls aim to offer more granular risk management options. The proposal aligns with similar risk controls offered by other exchanges. Use of these pre-trade risk controls remains optional, and NYSE National anticipates implementing the proposed changes by the first quarter of 2024 or no later than the end of June 2024. πŸ”—

SEC (Securities and Exchange Commission), US

The Securities and Exchange Commission (SEC) has proposed a rule to update the dollar threshold for funds to qualify as “qualifying venture capital funds” under the Investment Company Act of 1940. The proposed rule would adjust the threshold to $12 million aggregate capital contributions and uncalled committed capital, up from the current standard of $10 million. This adjustment, mandated by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, aims to index the threshold to inflation using the Personal Consumption Expenditures Chain-Type Price Index (PCE Index). Additionally, the proposal establishes a process for future inflation adjustments every five years. The SEC has opened a 30-day comment period for stakeholders to provide feedback on the proposed rule. πŸ”—


FSC (Financial Services Commission), Barbados

The Barbados Stock Exchange Inc. has proposed amendments to its rules, including provisions for levying fines for non-compliance. Interested parties have thirty days to submit written comments to the Financial Services Commission, with the proposed changes allowing fines for various non-compliance instances, such as failure to submit financial results or adhere to specific obligations outlined in the regulation. These fines range from $100 per day for certain violations to $1,000 per instance if advisory or warning letters are issued for non-compliance. The proposed rule aims to enhance regulatory oversight and ensure adherence to listing requirements on the Barbados Stock Exchange Inc. πŸ”—

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